Canadian National, Union Pacific Form New Rail Service

Canadian National Railway (CN) and Union Pacific Railroad (UP) have announced a new truck-competitive service for intermodal shipments moving between Central Canada, Michigan, Texas, and Mexico City. This is the first in a series of CN-UP joint initiatives designed to improve transit times and rail service, expedite border crossings and provide truck-competitive service, according to CN information.

The new CN/UP intermodal service offers Detroit- and Toronto-area shippers: third-morning service to Houston; fourth-morning availability at UP's Port Laredo intermodal facility in Laredo, Texas, and sixth-morning delivery in Mexico City in co-operation with Mexican railroad, Grupo Transportacion Ferroviaria Mexicana (TFM).

CN will move Montreal, Toronto, and Detroit shipments destined for Texas and Mexico south on its network to Memphis for interchange with UP. Union Pacific will then move the traffic to Texas destinations and steel-wheel interchange Mexican shipments to the TFM at Laredo. Northbound shipments will follow the reverse pattern.

Under the marketing agreement, CN and UP each have the ability to "through" price originating traffic destined to points on either network, which will result in improved pricing response times. CN and UP will provide service through their existing intermodal channel partners. CN will also offer customers door-to-door service as a complete logistics package.

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